Can i write off the sales tax of a trailer purchased as a second home?

Question

i know we can write off our interest for our trailer as a second home but can we write off the sales taxes that we paid when we purchased it?

Answer 1

I disagree with Judy. If a purchase of a vehicle can be added to the table amount as can the purchase of the materials to build a home, why would sales tax on a mobile home (trailer) not be deductible?

Sales taxes on mobile or prefabricated homes is deductible!

Answer 2

If you itemize, you can deduct state and local income taxes, OR sales taxes paid, whichever is larger. If you take sales tax, you can either add up all your receipts, or use a table that the IRS provides that depends on your state, your income and your family size. If you use the table, you could add sales tax on the purchase of a car, boat, or plane, but not a trailer. The sales tax paid would be part of your cost basis if and when you sell the trailer, so if you made a profit, that could reduce your taxes then.

Answer 3

If you are itemizing your deductions on Schedule A, you can deduct the higher of :
-sales tax paid
-state and local taxes paid

If you live in a state without income tax, then it is more beneficial for you to take the sales tax deduction. But if you pay state tax (or it is withheld from your salary) then it may be more beneficial for you to take this as a deduction. Compare the amounts and see which is larger. Depending on the state you live in, you can use the sales tax amount from a table in the instructions to Schedule A. You would add the taxes from your mobile home to this amount.

http://www.irs.gov/newsroom/article/0,,id=152316,00.html